A cost that is obtainable in large chunks and that increases or decreases only in response to fairly wide changes in the activity level is known as a step-variable cost.

Question

Quizplus · Accepted Answer

A step-variable cost is a cost that increases or decreases only in response to fairly wide changes in the activity level, and is obtainable in large chunks. This is different from a variable cost that changes proportionately with changes in production levels.

A Cost That Is Obtainable in Large Chunks and That